Re: F Fund
Apart from fluctuations and any short term reaction to the Fed decision today, the long term action in bonds has to be dominated by the fact that bond yields - ALL of them - are significantly below the overnight rate.
I don't know how this will get addressed, but it can't go on. Either yields must rise, or the fed must cut rates or lending will come to a halt with really bad consequences for the economy. Bond prices, and the I fund, cannot assume a steady uptrend until this gets fixed. For now, pressure is on yields to rise and prices to go down.
Trading, in its simplest form, is the process of capturing the disconnect between perception and reality.
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